Norwegian city wants “noisy” Bitcoin miners out, experts answer

There’s a new Bitcoin (BTC) energy R&D in town: noise. In Sortland, a Norwegian municipality, locals are waging war against Bitcoin miners to prevent further BTC mining development. Their final objection to proof-of-work (PoW) mining is that it is loud.

It is not enough that Bitcoin miners in Sortland use 100% renewable energy sources, create jobs and even use waste heat from the PoW process to dry out timber and seaweed for local businesses; they have to do it quietly.

Kjetil Hove Pettersen, CEO of local KryptoVault, explained that it could be another case of media spin targeting Bitcoin. He explained the situation to Cointelegraph:

“It is usually the negative voices that get the most attention in the media; this does not reflect all local opinions.”

Pettersen described that grid owners are actually happy to host Bitcoin miners – as Bitcoin miners help balance grids (as recently shown in Texas) – and that “There’s a political or social cost to being outspoken about it in today’s climate.” The false narratives that the media create are not new, according to Pettersen:

“[…] The narrative that we are suppressing other industrial establishments by using (the skeptics use the word “wasting”) so much energy, when in fact the opposite is true. Sometimes we are accused of driving up energy prices, which is also not true.”

Arcane Research analyst Jaran Mellerud and regular Cointelegraph contributor explained: “Northern Norway has a massive power surplus due to low local demand and limited transmission capacity.” In Northern Norway, where Sortland is located, energy costs are very low, and there is actually plenty of stranded hydropower.

Pettersen listed the benefits of Bitcoin mining as adding more revenue to local municipalities’ power grids while supporting the grid balance; lowering the overall network charges for consumers; creating jobs; earn income for the Norwegian treasury as Bitcoin miners pay taxes and ultimately, contribute to Norway’s national trade balance. That is without mentioning the direct consequence of Bitcoin mining, which secures the world’s largest cryptocurrency.

Pettersen admitted that the Bitcoin industry has “a lot of work to do in telling our story and dispelling myths and misconceptions.” Bitcoin provides a lifeline to many around the world – especially in the Global South – but the narrative that Bitcoin mining uses more energy than neighboring Finland continues to compel mainstream media publications.

Related: Seven times Bitcoin miners made the world a better place

Like Pettersen, for Mellerud it is a question of storytelling and narratives. He sums it up briefly: “Municipalities in Northern Norway should appreciate Bitcoin mining as a way to refine the electricity locally.” He continued:

Bitcoin mining facilities create local jobs and increase revenue for municipalities as they often own the local power generating companies.”

Unfortunately, narratives demonizing Bitcoin mining and energy consumption continue to make headlines. Noise may be next.